Brand Connections is going to join Local Planet, a global network of independent advertising and media agencies, to strengthen business operations and pave the way for rolling out services in the Asean market in the next few years.
Ichaya Santitrakul, a founding partner of Brand Connections, said the company has clinched a deal to join the world's biggest independent media agency group. The agreement is expected to be finalised by year-end.
There are around 30 independent media agencies from 30 countries joining Local Planet as shareholders, including Brand Connections.
Under the agreement, they can operate their businesses independently and flexibly, while also benefiting from the group's reliable connectivity around the world.
Local Planet is led by Martyn Rattle, former global boss of Vizeum and global chief client officer of Aegis Media.
Ms Ichaya said joining Local Planet would put Brand Connections among the leading media agencies worldwide, providing it better technology operations, know-how and networking opportunities.
"Our company aims to be a local media expert and I'm confident that being independent will allow Brand Connections to grow further," she said.
After joining Local Planet, Brand Connections expects to become an independent media agency standout in Asean, thanks to Thailand's strategic location.
Prasert Eamrungroj, another founding partner of Brand Connections, said independent media agencies were an increasingly rare commodity these days as many of them had already joined one of six big agency chains: WPP, Omnicom, Publicis, IPG, Dentsu Aegis and Havas.
"The launch of Local Planet in late April was a boon for high-potential media agencies in the world, including those in Thailand, to balance the influence of big players in the industry," he said.
Brand Connections projects 20% growth in revenue next year thanks to business from new clients.
It also plans to expand to Laos and Cambodia next year.
But the Thai ad agency projects flat revenue growth this year from 1.4 billion baht last year as the overall ad industry suffered a nearly 8% drop in ad spending during the first seven months.
The company said the sluggish economy since 2014 had pushed many brands to shift their advertising budgets to online media, as it is both cheaper and helps them reach target customers.
Nielsen Thailand reported a nearly 8% fall in ad spending for all media outlets to 65.85 billion baht during the first seven months.
But Mr Prasert remains optimistic the ad industry will improve next year, though factors including the local and global economy, along with the government's economic stimulus measures, would remain key.